25043 - Metito

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Environmental & Social Review Summary

Project Number

25043

Company Name

METITO HOLDINGS LTD

Date ESRS Disclosed

Apr 26, 2007

Country

Middle East, Pakistan, and Afg Region

Region

Middle East

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Sep 14, 2007
Signed : Sep 20, 2007
Invested : Oct 11, 2007

Sector

Water and Wastewater Utilities

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

Metito provides design, engineering, procurement, contracting, and operations and maintenance solutions for small and medium sized water and wastewater concessions serving the tourism industry and mixed use real estate developments in the Middle East and North Africa, and the ports services sector in Indonesia. Metito is looking to expand its services to include O&M services for municipal utility concessions in the Middle East. Metito currently has a portfolio of 17 concessions with a total installed capacity of 17,380 cubic meters per day for water supply and 11,650 cubic meters per day of sewage treatment. Metito is seeking financing from IFC to finance capital investment programs which will include expansion of existing industrial concessions and investment in new concessions.

Overview of IFC's Scope of Review

The scope of review of Metito''s compliance with IFC’s Performance Standards included assessment of Metito''s management capacity of its environmental, social, health and safety performance. The review relied on documents and reports made available by Metito, IFC technical consultant’s report, and interviews conducted by IFC staff during their site visits. The IFC team also visited a number of Metito facilities, including water and wastewater treatment facilities in the UAE and Egypt. During the visit IFC staff conducted interviews with key management personnel including Metito''s Manager for Environmental Health and Safety, the Director for Human Resources and various operational managers and staff.

E & S Project Categorization and Applicable Standard

Performance standards that are applicable for this investment include:

- PS1: Social and Environmental Assessment and Management System
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security

Because this investment will be used to support future, but as yet, undefined projects in addition to existing projects, the principal Performance Standards to be applied to this investment are those listed above. A condition of IFC’s investment going forward will be that any and all projects undertaken shall consider all relevant social and environmental risks and impacts, including the issues identified in PS1 through PS8.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because it may create a limited number of specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. Metito’s operations help extend water and wastewater treatment services in a region with limited infrastructure and fresh water resource availability. Wastewater treatment services provided by Metito help in environmental protection and enhancing public health through treatment and disposal of sewage, and reuse of treated effluent for irrigation and district cooling.

Environmental and Social Mitigation Measures

Metito has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - host country laws and regulations, IFC Performance Standards and applicable World Bank/IFC guidelines. The information about how these potential impacts will be addressed by Metito is summarized in the paragraphs that follow.

- Social and Environmental Assessment and Management Systems

Metito is ISO 9000 certified and expects to achieve ISO 14001 and 18001, and implement procedures consistent with SA 8000 by the end of 2008. Metito’s management program includes operational policies and procedures that are implemented at each of its facilities by a supervisor who reports to Metito''s EH&S manager. Metito’s environmental management team has overall responsibility for ensuring consistency and compliance with local regulatory requirements. For its design, engineering, procurement and contracting (EPC) business, potential impacts of the project are identified during the project planning stage, and are used to prepare specific environmental control plans containing identified mitigation measures consistent with local regulatory requirements. For facilities which Metito has O&M concessions, routine monitoring and supervision activities are undertaken by operational staff according to established procedures, including periodic reporting on key environmental and safety control factors, such as effluent quality and employee-related incidents. In addition, the company’s EH&S management team periodically inspects facilities to verify performance of compliance with applicable requirements.

Human resources are managed effectively at the corporate level and have insight into all Metito facilities and operations. Training of staff is done on regular basis in compliance with local workplace regulations. Metito''s EH&S manager is responsible to ensure that employees are adequately trained and equipped to perform their work safely. Manpower providers are strictly selected based on having adequately trained labor force and in full compliance with Metito''s EH&S standards. Reporting requirements are consistent with UAE laws and regulations, and are used for continual improvement of training programs especially in health and safety. Internal audits are conducted periodically and overseen by senior management. As required by UAE regulations, Metito provides status reports such as those for environmental and health and safety performance to the relevant government authorities.

Going forward, Metito will adopt IFC environmental and social Performance Standards as part of the applicable legal and other requirements in its management system. In addition, the company will incorporate formal procedures for environmental and social screening of business opportunities and new projects into its marketing strategy, commercial planning, and project bidding processes. The management system will be extended to incorporate community engagement, including clear procedure on disclosure and consultation with potentially affected communities.

- Labor and Working Conditions

Metito employs more than 1,000 permanent employees in its operations globally, and also employs contract employees as and when needed. Labor practices and working conditions, including occupational health and safety, at Metito’s operations comply with local regulatory requirements. Metito has a Human Resources policy that is consistent with Local UAE laws. The company’s human resources policy is embedded in the employment contracts, and addresses working conditions, terms of employment, cash packages and other benefits. This information is also provided in the form of an employee handbook at the time of induction into the company. Employment relationships recognize the principles of non-discrimination and equal opportunity which are included in individual labor contracts. Labor contracts cover issues related to the termination of employment consistent with local regulatory requirements. The minimum employment age at Metito is 18 years. Subcontractors are expected to comply with all Metito labor requirements specified in contractual arrangements.

Occupational health and safety at Metito''s facilities is managed by designated health and safety managers. All employees in the company undergo a full training program as part of their induction process and followed by further training relevant to the nature of their job. Facilities are audited annually by regulatory agencies and in compliance with local regulatory requirements. OH&S performance for Metito facilities is reviewed periodically at the corporate level. Health and safety performance of the company is consistent with good international industry practice for the sector. Workplace air quality and noise is monitored annually and is reported to be within acceptable limits

To ensure documented consistency with host country laws and IFC Performance Standards, Metito will review and update their Human Resources Policy, including specific references to non-discrimination, freedom of association and collective bargaining and child labor and forced labor for all its operations, where permitted by local laws and regulations

- Pollution Prevention and Abatement

Effluent discharged from facilities operated by Metito in the UAE and Egypt complies with local regulatory requirements and is consistent with requirements of the IFC Performance Standards. Treated potable water complies with WHO standards for drinking water. Effluents from potable water treatment operations in the UAE are primarily reject brine from desalination processes which is discharged through reinjection wells under stringent regulatory oversight. A majority of wastewater treatment operations in the UAE and Egypt are for secondary treatment of domestic sewage using activated sludge processes. Newer facilities are being designed to use Membrane Bioreactors which consistently produce better quality effluent. Treated effluent is reused for irrigation of parks and gardens, and for district cooling needs in the UAE. Management and disposal of sludge and other residue from water and wastewater operations is performed by licensed contractors and largely complies with local country regulations. Air emissions from Metito facilities primarily include odors which are typical to wastewater treatment operations. Odor control is achieved by optimizing operational conditions, and where necessary by covering aeration tanks and using odor control scrubbers.

- Community Health, Safety and Security

Engineering controls and staff training are provided to mitigate risks and issues associated with Metito''s operation of water and wastewater treatment facilities, which includes transport, storage and use of gaseous chlorine for. At Metito''s facilities, the use and storage of chemicals, particularly of chlorine, are subject to stringent standards because of the risks associated with accidental releases. The company ensures that chlorine and other chemical stores provide for adequate containment and neutralizing systems to minimize the impact of release. Consistent with local regulatory requirements, Metito has emergency prevention and control plans which specifies responsibilities, ensures appropriate response equipment and materials are in place, and detail a set of procedures to be followed to minimize the harm of any potential accident. Metito will also add a community involvement component that addresses appropriate behavior and safety measures to be implemented in the event of a toxic chemical (e.g., chlorine gas) release beyond the plant boundaries.

Stakeholder Engagement

Dialog and communication with affected communities including public consultation and disclosure of environmental and social impact assessment occurs through procedures established by host country regulations. Metito will establish methods for communicating environmental and social aspects to external interested parties and maintain procedures for receiving, documenting and responding to concerns from any external interested parties relating to the project.

For more information, see the company’s website: http://www.metito.com, or contact:

Mr. John Wheatley
Group Finance Director
PO Box 22701, Sharjah, United Arab Emirates
Telephone Number: +971 6 556 1818
Fax Number: +971 6 556 5060

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

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